No definitive decision on German aid for Opel… yet!

Article by Christian A., on August 27, 2010

The future of thousands of workers at the Opel unit of General Motors Co. remains undetermined. A steering committee is set to meet on Tuesday to discuss if it will recommend that taxpayers' money be used to provide loans to Opel to fund about 8,300 job cuts.

However, Economy Minister Rainer Bruederle said no decision is expected with regards to the German aid that the GM unit has been asking for.

If granted, the state aid worth about 1.3 billion euros ($1.6 billion) will be used by Opel to become profitable once again after about 12 months.

In an interview at Brussels, Bruederle said that the committee isn't likely to arrive at "a definitive decision" during the meeting.

GM is willing to contribute only half of the 3.7 billion euros that Opel requires, saying that European taxpayers should handle this problem since after all, Opel is a European carmaker.

The senior members of the German government will consider the affected states in making its final decision. Up to 120,000 jobs in Germany alone are at stake here.

According to German business daily Handelsblatt, three of four German states with Opel plants are prepared to grant guarantees to GM.

Handelsblatt said that its government sources have pointed to the states of Rhineland-Palatinate, Thuringia and North Rhine-Westphalia to be willing to back these guarantees. Hesse had held back. This definitely raises the pressure on Chancellor Angela Merkel to grant GM's request. [via autonews - sub. required]

Topics: opel, germany

If you liked the article, share on:

Comments

Recommended

It seems like a never-ending battle between the 2017 Honda Civic Type R and the VW Golf GTI Clubsport S when it comes to owning the Nürburging record. This story...
by - April 25, 2017
Another day, another record. Is the new Dodge Challenger SRT Demon the fastest car to date? According to some sources, the Dodge Challenger SRT Demon had just beaten the Tesla...
by - April 24, 2017
Following in the footsteps of the McLaren 570S, 540C and 570GT is the newest addition to the McLaren Sports Series -- the roofless 570S Spider. McLaren 570S was rolled out...
by - April 24, 2017
The British automaker Lotus is noted for releasing low production, limited editions of its sports car lineage. Now the Hethel-based automobile manufacturer is back at it again with its latest...
by - April 24, 2017
Earlier this week, the revamped 2018 Mercedes-Benz S-Class was revealed ahead of the 2017 Shanghai Auto Show. As expected, Mercedes Benz’s flagship model is now offered in several variants including...
by - April 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries